Abstract:Purpose
This study aims to investigate whether and how auditors responded to the documented increases in earnings management after split-share structure reform (SSSR) in China, as manifested in auditors’ propensity to issue modified audit opinions (MAOs) after the SSSR. This study further investigates how client importance and auditor size influence auditors’ response to earnings management after the SSSR.
Design/methodology/approach
This study adopts logit regression models to investigate auditors’ propensi… Show more
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